The three-day Business Standard BFSI Insight Summit 2025 began on Wednesday with leading experts from the finance and banking industry discussing India’s growth story amid a challenging global environment. Senior officials, bankers, economists, and thought leaders shared key insights during 15 sessions on the first day of the fourth edition of the summit held in Mumbai.
In the opening session, M. Nagaraju, Secretary of the Department of Financial Services (DFS), Ministry of Finance, said that India’s financial services sector is currently “the biggest and strongest ever in the country’s history.” He emphasized that this strength should not lead to complacency in due diligence and credit assessment in the banking sector.
Addressing top financial leaders, Nagaraju said that public sector banks (PSBs) achieved record profits last year and paid their highest-ever dividends to shareholders. He added that the government’s legislative and procedural reforms in the BFSI sector were showing positive results.
Speaking about consolidation in PSBs, he said the government is open to new suggestions and ideas. Nagaraju also highlighted the need for more banks to meet the diverse credit needs of the economy. He stated, “To achieve the goal of Viksit Bharat by 2047 with a per capita income of $18,000 to $20,000, India will need more large, mid-size, and small banks.”
V. Anantha Nageswaran, Chief Economic Advisor (CEA) to the Government of India, said that India’s GDP growth could reach 7% by the end of FY26. “A couple of months ago, there were concerns that growth might fall to around 6%. But now, estimates suggest it could be above 6.8%, and I won’t be surprised if it touches 7% for the full financial year,” he said.
Nageswaran also warned the financial sector about the rise in cyber crimes, especially “digital arrest” scams targeting elderly people. He said banks have a responsibility to address such cases urgently and sensitively. “If banks fail to act seriously, people might lose trust and keep their money at home, which could hurt the banking system’s stability,” he cautioned.
In another session, Poonam Gupta, Deputy Governor of the Reserve Bank of India, said that while India’s GDP growth of 6.5% to 6.8% is strong, it should not be seen as the country’s ultimate goal. She said there is still room for policy action, depending on future conditions. “Fiscal policy has strongly supported growth through better tax systems and higher spending on capital projects,” she noted.
Gupta added that India must identify new sources of growth amid rising global protectionism, as trade is no longer the strong driver it once was during the hyper-globalization phase.
C. S. Setty, Chairman of the State Bank of India, said that credit growth remains strong, with double-digit expansion across sectors. He pointed out that MSME and agriculture sectors are growing at 16–17%, while retail mortgages are also performing well. However, corporate credit growth remains slow as many companies are using their cash reserves for capital expenditure.
Setty added that private investment (capex) is expected to pick up soon as domestic consumption stabilizes. “This economy is built on strong domestic demand. Once that steadiness is visible, private investment will rise again,” he said.
K. V. Kamath, Chairman and Independent Director of Jio Financial Services, said that technology has made financial systems more efficient and allowed money to flow easily across savings, investments, and consumption. He explained that Indian consumers now seek better returns from diverse financial instruments beyond traditional banks. “In the last few years, structural enablers like pension systems, insurance, and mutual funds have played a major role. The capital market now works alongside the banking system, offering consumers more options,” Kamath said.
